ruveyn ben yosef

Why G.M. is going down the tubes

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G.M. stock has slid to a 63 year low. Why is the giant automaker in such a sorry state?

Two reasons come to mind:

1. Corporate Clog. G.M. is one of the least innovative and nimble of the automotive manufacturers. Their organization is top-heavy and bureaucratic. I did some contract programming for G.M. in the past and I find them thoroughly appalling.

2. During the fat years, G.M. signed contracts with the labor unions giving them extremely generous pension and medical benefits. Now they have an unsustainable liability.

I suspect the reason why the Democrats are so hot to bail out G.M. is not out of live for the corporation but to keep the subsidies to their labor union buddies alive. The Democrats will pick your pockets for organized labor and the Republicans will pick your pockets so their corporate buddies can go to the Grand Cayman Islands and have a nice time. The politicians are thicker than fleas and filthier than flies.

Like the comedian once said --- America! What a country!

ruveyn

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G.M. stock has slid to a 63 year low. Why is the giant automaker in such a sorry state?

And another very important factor: when people can buy Toyota or Lexus or other reliable cars, few want to buy junk from GM that will fall apart.

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G.M. definetly has some big problems and some of it is their own fault, especially lately. But, some of it is also due to government intervention that for years caused the spending of huge sums of money to defend themselves against the so called "Department of Justice" and anti-trust suits. I remember reading that there were even demands by the board members to not state or write certain words, such as; number one, beat the competition, highest quality and more. So, although I think G.M. should take some of the blame, especially with their compromises. I do not think they are fully responsible for no longer attempting to be "number one," "beat the competition" and maintain the "highest quality."

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G.M. definetly has some big problems and some of it is their own fault, especially lately. But, some of it is also due to government intervention that for years caused the spending of huge sums of money to defend themselves against the so called "Department of Justice" and anti-trust suits. I remember reading that there were even demands by the board members to not state or write certain words, such as; number one, beat the competition, highest quality and more. So, although I think G.M. should take some of the blame, especially with their compromises. I do not think they are fully responsible for no longer attempting to be "number one," "beat the competition" and maintain the "highest quality."
And more. http://online.wsj.com/article/SB122645159441719325.html?mod=djemEditorialPage

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